As we highlighted on StockTwits and Twitter throughout the day yesterday, $LULU broke below our invalidation point of $65.87 after unexpectedly lowering their guidance. Despite a late rally attempt it closed below that level, so we will exit at this morning’s open. The stock looks a little better bid so we should be out for a loss of around 8%.
Lululemon ($LULU) -8.5%. Original 3/14 entry post here.
As much as we need to cut losing trades once they’ve invalidated, we also have to make it part of a process, exiting positions as calmly as you entered them, so you won’t find us trading in the after hours when this went below $60 Monday night, or even intraday yesterday believing we can predict what now constitutes a good price to exit. The trade is only invalidated once it closes below our stop, and then we get the next day’s open as our print.